Court Rejects CFPB’s RESPA Interpretation, Declares Single-Director Structure Unconstitutional

On October 11, 2016, a three-judge panel of the United States Court of Appeals for the District of Columbia Circuit issued a ruling overturning a $109 million monetary penalty imposed by the Consumer Financial Protection Bureau (“CFPB” or “Bureau”). The decision in PHH Corporation v. CFPB addressed the unconstitutionality of the Bureau’s structure and the retroactive application of a new Real Estate Settlement Procedures Act (“RESPA”) interpretation and imposed RESPA’s three-year statute of limitations on the Bureau. This Legal Update discusses the ruling.